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DeLorean Distributes to Creditors
According to a newswire report, the DeLorean Motor Co. bankruptcy case
will close after 18 years. Attorneys estimated in 1983 that creditors
would receive less than $0.5 on the dollar; however, the unsecured
creditors received an interim distribution of 9 percent in 1990 and are
currently receiving checks for 90 percent of the remaining balance. The
case was originally filed as a chapter 11 case in October 1982, and
converted to chapter 7 in December 1983. 'I am hopeful that creditors
will be able to collect up to 100 percent of their principal in the
final distribution to be made near the end,' said David W. Allard, the
president-elect of the National Association of Bankruptcy Trustees.
That's almost unheard of in chapter 7 cases.' The DeLorean
bankruptcy case has been represented by Deborah Fish of Allard &
Fish and Sheldon Toll of Honigman Miller Schwartz and Cohn, both
of Detroit. Donald M. Robiner, U.S. Trustee, Cleveland,
administered the bankruptcy proceeding for many years.
Eagle Geophysical, Auxilliary Announce Joint Reorganization
Plan
According to a newswire report, Eagle Geophysical Inc. and its auxiliary
announced that they have filed their proposed joint reprganization plan.
The proposed plan allows those with unsecured claims totaling $100,000
or less to take a cash payment of 15 percent of their claims or shares
of new common stock in the reorganized company. The Houston corporation
filed for chapter 11 in Delaware late last year. A hearing was held in
bankruptcy court last week and the company's disclosure statement was
approved. If confirmed, all outstanding shares of common stock of the
company will be extinguished and new common stock will be issued to
various creditors. One of Eagle Geophysical's subsidiaries, Atlantic
Horizon Inc., received a confirmation of a liquidation plan in March.
Martin Color-Fi Files for Reorganization
According to a newswire report, Martin Color-Fi Inc. (MCF) announced
Friday that it has filed its disclosure statement and reorganization
plan with the bankruptcy court in Columbia, S.C. Under this plan, MCF
seeks the approval of an agreement initiated by the company with
Dimeling, Schreiber & Part and one of its affiliates. The bankruptcy
court directed that competitive bids from other prospective equity
investors should be received no later than June 11, and if necessary, a
hearing has been scheduled for June 15. MCF filed for chapter 11
protection in November 1998 and has since stabilized its core operations
and liquidated its non-core assets. MCF produces solution-dyed polyester
fiber and pellets from recycled plastic materials.
Genicom Goes to Auction Block
The Washington Post reported that Genicom Corp., the Chantilly,
Va.-based computer printer manufacturer that served such clients as
Wal-Mart, Chrysler, General Motors and Prudential, is spending its last
days in federal bankruptcy court in Wilmington, Del., and its assets are
being auctioned off. The sale is expected to bring in more than $34
million for the creditors of a company that generated $452 million in
revenue just two years ago. Genicom was forced to file bankruptcy in
March by a group of nine of its lenders, led by Bank of America, that
say they are owed nearly $116 million.
British Nuclear Fuels Calls Bankruptcy 'Nonsense'
A Dow Jones newswire report said that London-based British Nuclear Fuels
Ltd. dismissed a newspaper report that said it was facing bankruptcy.
The Sunday Telegraph had reported the company could go bankrupt
after the discovery of a hole in its accounts. 'A confidential internal
report has exposed unexpected costs which bring the total long-term
liabilities in BNFL accounts up to GBP36 billionwhich threatens
the company with financial ruin and will be seen as the last nail in the
coffin of privatization plans and could lead to customers unilaterally
revoking their contracts, ' the newspaper reported. Bill Anderton, the
company's head of media affairs, calls the claim of bankruptcy
'nonsense.' The company said it will not offer any more comments until
they publish their review by September or sooner. The company was
involved in controversy last year when it admitted to falsifying quality
checks on oxide nuclear fuel sent to Japan, the newspaper said.
Creditors Approve Canadian Airlines Restructuring
The Wall Street Journal reported that Canadian Airlines Corp.
said its creditors have voted in favor of its restructuring plan. The
airline said that 100 percent of the secured creditors and 65 percent of
the unsecured creditors voted for the plan. With this arrangement,
secured noteholders will be receiving payment of about $0.97 for each $1
of claims. Affected unsecured creditors will be entitled to $0.14 for
each $1 of claims. The Calgary, Alta.-based airline said the Alberta
court intends to hold a hearing next week to approve the plan. Canadian
Airlines plans to restructure about $3.5 billion of debt before
completing its merger with Air Canada.
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